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Australian wool prices up amid supply pressures, strong Chinese demand

18 Jul '25
2 min read
Australian wool prices up amid supply pressures, strong Chinese demand
Pic: Shutterstock

Insights

  • Australian wool prices rose again this week, with all types gaining 5–20ac/clean kg amid tightening supply and strong Chinese mill demand.
  • Nearly half of all Merino fleece sold went to Chinese buyers, with Sydney seeing a single buyer secure over 36 per cent of fleece.
  • Merino fleece climbed 15ac overall, while fine micron lots attracted premiums.
  • Skirtings and crossbreds held firm.
Australian wool auctions posted further gains this week, with prices for all types and descriptions rising by 5 to 20ac/clean kg. A cautiously optimistic mood dominated the sale rooms as buyers, facing tight supply conditions, showed increased willingness to pay premiums—particularly for Merino fleece.

The absence of Fremantle concentrated all supply pressure on the Eastern states. In Sydney, the largest Chinese top maker demonstrated robust buying power, acquiring more than 36 per cent of all Merino fleece sold on the final day. Overall, Chinese direct mill buyers secured 48.4 per cent of this week’s Merino fleece, underscoring their continued dominance, the Australian Wool Innovation (AWI) said in its commentary for week 3 of the current wool marketing season.

Traders had fewer opportunities to contract Merino fleece but remained active in skirting and crossbred categories, which were described as ‘easier to sell’ with more consistent demand. Merino fleece prices rose around 15ac/clean kg on average, with select 17–19 micron lots drawing Italian weaver interest and fetching premiums up to 200ac above standard rates.

Skirtings, crossbreds, and cardings held firm to 5ac dearer, supported by limited supply. Next week’s auctions—the last before the three-week winter recess—will see volumes rise to over 38,600 bales, with Fremantle rejoining the roster. Sales are scheduled for July 22–23, 2025, the AWI commentary added.

ALCHEMPro News Desk (KD)

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